In the past, we have discussed the importance of hiring the right people. This may sound like a simple process, but how can you be sure your company currently has the right people in place? And if you don’t, how do you go about finding them? More importantly, how do you retain them? These questions are overwhelming, but are important ones to answer, as the benefits of hiring the right people are increased effectiveness, efficiency and improved profit.
As a sales trainer for financial advisors, I often use the Moss Adams profitability and compensation survey results from financial advisors. The public accounting firm concluded that the top tier firms paid employees 10% to 20% more than other financial advising companies. The firms that increased employee compensation also saw a rise in profitability by more than 30%. This means financial advisors are receiving more productivity from each employee.
The question now is how do we go about hiring the right people? Gino Wickman, founder of the Entrepreneurial Operating System (EOS) and author of Traction: Get a Grip on Your Business, suggests evaluating employees on the GWC scale: ‘Get It, Want it, and Capacity to Do It.’
Let’s look into how this approach plays out.
Getting it means understanding the big picture as well as recognizing the smaller pieces that are needed in order to get the job done. Does the employee understand his or her mission? Can he/she achieve the desired outcomes?
The employee needs to enjoy what he/she is doing and be motivated to excel. In essence, your employee needs to have a drive. This might not exist for every project, but in total, all members of your company should have a desire to succeed.
Capacity to Do It
The last function in the GWC scale is having the education, experience and ability to handle the job. Education and experience are easy enough to measure; however, ability is far more difficult. Ability is how an individual applies his or her knowledge in order to make decisions.
Before I began incorporating the GWC scale into my hiring process, I contracted an individual who had run two offices for a prominent wealth advisor. Prior to that, she was in charge of operations for two separate financial advisors, so she was familiar with what we were trying to accomplish. She enjoyed managing others and had a history of assuming leadership positions. Her previous roles had granted her the education and knowledge needed; however, when it came to capacity, she was unable to apply her ability to communicate, make decisions or accomplish projects.
If one of your employees lacks one or several of these traits, it is time to part ways. While it can be difficult to do, you need to let the person go and hire the RIGHT employee that will generate results for you and your company.
Working with people is the hardest part about owning a business. As a financial advisor, I highly recommend using GWC to evaluate your employees in order to increase efficiency, speed and profitability.